Financial Services Sector: Value Investing Analysis
About the Financial Services Sector
Companies that provide financial services include banks, savings and loans, asset management companies, credit services, investment brokerage firms, and insurance companies. Companies in this sector include Allianz, JPMorgan Chase, and Legg Mason.
The Financial Services sector groups related businesses that share similar economic characteristics, market dynamics, and competitive forces. By analyzing stocks within this sector, you can compare companies on a more level playing field—making it easier to identify which businesses offer the best value for your investment dollars.
Understanding sector performance helps you evaluate whether individual stocks are cheap or expensive relative to their peers. A P/E ratio that looks high in one sector might be a bargain in another. This context is essential for value investors seeking to calculate realistic expected returns.
Financial Services Stocks: Value Analysis
Below are the stocks we track in the Financial Services sector, with key value investing metrics. If you have special knowledge about this sector, you have an advantage—use these metrics to find stocks that may be trading below their intrinsic value.
| Company | Current Price | Current Price Discount 10 years |
|---|---|---|
| Commerce Bancshares (CBSH) |
$59.93 | none |
| Central Pacific Financial Corp. (CPF) |
$39.99 | none |
| Voya Financial (VOYA) |
$100.68 | none |
| U.S. Bancorp (USB) |
$64.23 | none |
| Home Federal Bancorp, Inc. of Louisiana (HFBL) |
$23.00 | none |
| Meta Financial Group (CASH) |
$89.50 | none |
| Ventas (VTR) |
$90.85 | none |
| Equity Bancshares (EQBK) |
$51.54 | none |
| Horizon Bancorp (HBNC) |
$20.80 | none |
| Camden Property Trust (CPT) |
$110.72 | none |
| United Tennessee Bankshares (UNTN) |
$30.00 | none |
| Popular (BPOP) |
$175.79 | none |
| German American Bancorp (GABC) |
$51.19 | none |
| First Financial Bankshares (FFIN) |
$35.53 | none |
| Euronet Worldwide (EEFT) |
$76.90 | none |
| Kingstone Companies (KINS) |
$20.31 | none |
| United States Natural Gas Fund, LP (UNG) |
$9.77 | none |
| Loews Corporation (L) |
$115.98 | none |
| Kearny Financial Corp. (KRNY) |
$9.74 | none |
| Ares Management Corporation (ARES) |
$142.91 | none |
| Raymond James Financial (RJF) |
$178.57 | none |
| Morningstar (MORN) |
$200.25 | none |
| WisdomTree Continuous Commodity Index Fund (GCC) |
$24.12 | none |
| NexPoint Residential Trust (NXRT) |
$24.43 | none |
| BankFinancial Corporation (BFIN) |
$12.00 | none |
| Apollo Commercial Real Estate Finance (ARI) |
$6.79 | 51.4% |
| Retail Opportunity Investments Corp. (ROIC) |
$0.00 | none |
| Union Bankshares (UNB) |
$23.50 | none |
| Webster Financial Corporation (WBS) |
$77.95 | none |
| Affiliated Managers Group (AMG) |
$383.42 | none |
| 360 DigiTech (QFIN) |
$13.56 | none |
| First Financial Corporation (THFF) |
$82.79 | none |
| First Interstate BancSystem (FIBK) |
$38.40 | none |
| Northern Trust Corporation (NTRS) |
$182.41 | none |
| Arbor Realty Trust (ABR) |
$5.22 | 3.0% |
| Brixmor Property Group (BRX) |
$31.18 | none |
| VirnetX Holding Corp (VHC) |
$13.56 | none |
| Harleysville Group (HGIC) |
$0.00 | none |
| Ameriprise Financial (AMP) |
$553.58 | none |
| Public Storage (PSA) |
$326.49 | none |
| Sabra Health Care REIT (SBRA) |
$20.66 | none |
| Extra Space Storage (EXR) |
$149.86 | none |
| First Robinson Financial Corporation (FRFC) |
$70.50 | none |
| Intercontinental Exchange (ICE) |
$149.20 | none |
(SCBT) |
$0.00 | none |
| Vornado Realty Trust (VNO) |
$40.91 | none |
| Selective Insurance Group (SIGI) |
$96.63 | none |
| Tiptree (TIPT) |
$17.85 | none |
| Annaly Capital Management (NLY) |
$22.75 | none |
| Truist Financial Corporation (TFC) |
$52.66 | none |
| Ashford Hospitality Trust (AHT) |
$3.20 | none |
| The Bank of Nova Scotia (BNS) |
$87.13 | none |
| Carver Bancorp (CARV) |
$1.55 | 67.4% |
| Gladstone Land Corporation (LAND) |
$8.16 | none |
| Equity LifeStyle Properties (ELS) |
$64.91 | none |
| American Tower Corporation (REIT) (AMT) |
$173.00 | none |
| Four Corners Property Trust (FCPT) |
$25.17 | none |
| Evercore (EVR) |
$319.73 | none |
| Apartment Investment and Management Company (AIV) |
$2.67 | 90.3% |
| Park National Corporation (PRK) |
$210.10 | none |
| UDR (UDR) |
$38.55 | none |
| LCNB Corp. (LCNB) |
$20.41 | none |
| Associated Banc-Corp (ASB) |
$31.75 | none |
| LPL Financial Holdings (LPLA) |
$354.24 | none |
| FB Financial Corporation (FBK) |
$62.05 | none |
| Independent Bank Corporation (IBCP) |
$38.45 | none |
| KKR & Co. (KKR) |
$108.21 | none |
| Boston Properties (BXP) |
$70.67 | none |
| Brandywine Realty Trust (BDN) |
$3.17 | 74.0% |
| Valley National Bancorp (VLY) |
$14.88 | none |
| Omega Healthcare Investors (OHI ) |
$48.74 | none |
| White Mountains Insurance Group, Ltd. (WTM) |
$2117.86 | none |
| CorVel Corporation (CRVL) |
$59.10 | none |
| Crown Castle International Corp. (REIT) (CCI) |
$77.66 | none |
| LendingClub Corporation (LC) |
$19.21 | none |
| Invesco Ltd. (IVZ) |
$32.00 | 12.8% |
| Nasdaq (NDAQ) |
$93.62 | none |
| Shore Bancshares (SHBI) |
$24.61 | none |
| The St. Joe Company (JOE) |
$64.84 | none |
| ProAssurance Corporation (PRA) |
$25.00 | 4.4% |
| Blackstone Mortgage Trust (BXMT) |
$14.42 | none |
| Oxbridge Re Holdings Limited (OXBR) |
$1.51 | none |
| The9 Limited (NCTY) |
$4.75 | none |
| Community Trust Bancorp (CTBI) |
$79.46 | none |
| Sun Communities (SUI) |
$121.67 | none |
| Realty Income Corporation (O) |
$62.90 | none |
| Sun Life Financial (SLF) |
$82.27 | none |
| Camden National Corporation (CAC) |
$59.77 | none |
| Southside Bancshares (SBSI) |
$32.82 | none |
| Easterly Government Properties (DEA) |
$25.43 | none |
| United Bancorp (UBCP) |
$15.50 | none |
| RLI Corp. (RLI) |
$61.82 | none |
| Lake Shore Bancorp (LSBK) |
$17.17 | none |
| Welltower (WELL) |
$231.57 | none |
| NMI Holdings (NMIH) |
$44.47 | none |
| Westwood Holdings Group (WHG) |
$19.26 | 52.6% |
| High Sierra Technologies (HSTI) |
$1.40 | none |
| Eagle Financial Services (EFSI) |
$40.41 | none |
| PennyMac Mortgage Investment Trust (PMT) |
$9.53 | none |
| Redwood Trust (RWT) |
$4.69 | none |
| National Bankshares (NKSH) |
$41.15 | none |
| Newtek Business Services Corp. (NEWT) |
$15.40 | none |
| OceanFirst Financial Corp. (OCFC) |
$19.81 | none |
| Ames National Corporation (ATLO) |
$31.13 | none |
| New York REIT (NYRT) |
$0.00 | none |
| Live Oak Bancshares (LOB) |
$43.63 | none |
| Chemung Financial Corporation (CHMG) |
$82.37 | none |
| Pacific Financial Corporation (PFLC) |
$18.75 | none |
| CCUR Holdings (CCUR) |
$2310.00 | none |
| Principal Financial Group (PFG) |
$115.25 | none |
| CIT Group (CIT) |
$0.00 | none |
| EPR Properties (EPR) |
$61.22 | none |
(ALTE) |
$0.00 | none |
| Fifth Third Bancorp (FITBI) |
$25.69 | none |
| Waterstone Financial (WSBF) |
$20.96 | none |
| CB Financial Services (CBFV) |
$36.96 | none |
| AvalonBay Communities (AVB) |
$189.25 | none |
| Outfront Media (OUT) |
$31.98 | none |
| Hilltop Holdings (HTH) |
$40.00 | none |
| American International Group (AIG) |
$79.32 | none |
(BPO) |
$0.00 | none |
| Orchid Island Capital (ORC) |
$6.38 | none |
| Ryman Hospitality Properties (RHP) |
$128.20 | none |
| DDR Corp. (DDR) |
$0.00 | none |
| DigitalBridge Group (DBRG) |
$15.87 | none |
| BOK Financial Corporation (BOKF) |
$144.69 | none |
| Flushing Financial Corporation (FFIC) |
$15.47 | none |
| United Bancshares (UBOH) |
$38.57 | none |
| eHealth (EHTH) |
$1.42 | none |
| The Allstate Corporation (ALL) |
$262.56 | none |
| Markel Corporation (MKL) |
$1887.65 | none |
| Chubb Limited (CB) |
$348.30 | none |
| Cboe Global Markets (CBOE) |
$288.42 | none |
| Network-1 Technologies (NTIP) |
$1.60 | none |
| Whitestone REIT (WSR) |
$18.99 | none |
| State Street Corporation (STT ) |
$185.23 | none |
| UMH Properties (UMH) |
$15.32 | none |
| Synchrony Financial (SYF) |
$79.08 | none |
| Republic Bancorp (RBCAA) |
$100.58 | none |
| Bankwell Financial Group (BWFG) |
$67.40 | none |
| ACNB Corporation (ACNB) |
$65.43 | none |
| National Western Life Group (NWLI) |
$0.00 | 64.4% |
| Wintrust Financial Corporation (WTFC) |
$162.97 | none |
| Eagle Bancorp (EGBN) |
$28.36 | 24.5% |
| State Street Corporation (STT) |
$185.23 | none |
| MicroStrategy Incorporated (MSTR) |
$97.65 | 32.1% |
| City Holding Company (CHCO) |
$145.73 | none |
| Houlihan Lokey (HLI) |
$128.25 | none |
| Bar Harbor Bankshares (BHB) |
$40.73 | none |
| National Australia Bank Limited (NABZY) |
$15.12 | none |
| Consumer Portfolio Services (CPSS) |
$9.31 | 71.7% |
| FS Bancorp (FSBW) |
$42.99 | none |
| Independence Realty Trust (IRT) |
$17.06 | none |
| Ares Commercial Real Estate Corporation (ACRE) |
$4.63 | 51.8% |
| Provident Financial Holdings (PROV) |
$17.94 | none |
| Unity Bancorp (UNTY) |
$60.03 | none |
| MFA Financial (MFA) |
$9.09 | none |
| Stock Yards Bancorp (SYBT) |
$85.43 | none |
| Gaming and Leisure Properties (GLPI) |
$44.41 | none |
| AGNC Investment Corp. (AGNC) |
$10.64 | 49.3% |
| CVB Financial Corp. (CVBF) |
$23.10 | none |
| Rayonier (RYN) |
$21.93 | none |
| Investors Title Company (ITIC) |
$289.56 | none |
| Transcontinental Realty Investors (TCI) |
$43.46 | none |
| Banc of California (BANC) |
$19.52 | none |
| Community West Bancshares (CWBC) |
$25.81 | none |
| CareTrust REIT (CTRE) |
$40.84 | none |
| BlackRock (BLK) |
$1131.13 | none |
| American Financial Group (AFG) |
$140.60 | none |
| Heritage Insurance Holdings (HRTG) |
$29.80 | none |
| Aon Plc (AON) |
$356.65 | none |
| WVS Financial Corp. (WVFC) |
$19.53 | none |
| SB Financial Group (SBFG) |
$26.28 | none |
| American Equity Investment Life Holding Company (AEL) |
$0.00 | 19.1% |
| Sierra Bancorp (BSRR) |
$40.48 | none |
| Great Ajax Corp. (AJX) |
$0.00 | none |
| First Busey Corporation (BUSE) |
$31.58 | none |
| Healthpeak Properties (PEAK) |
$0.00 | none |
| Cathay General Bancorp (CATY) |
$64.35 | none |
| BancFirst Corporation (BANF) |
$114.59 | none |
| Artisan Partners Asset Management (APAM) |
$42.11 | none |
| SBA Communications Corporation (SBAC) |
$179.54 | none |
| Encore Capital Group (ECPG) |
$94.08 | none |
| Seacoast Banking Corporation of Florida (SBCF) |
$34.74 | none |
| National Bank Holdings Corporation (NBHC) |
$43.19 | none |
| Annaly Capital Management (NLY ) |
$22.72 | 27.2% |
| Apple Hospitality REIT (APLE) |
$16.51 | none |
| Usio (USIO) |
$2.13 | none |
(SRCE ) |
$89.74 | none |
| Fairfax Financial Holdings Limited (FRFHF) |
$1668.65 | none |
| Bank OZK (OZK) |
$51.30 | none |
| Oconee Financial Corporation (OSBK) |
$52.25 | none |
| VelocityShares Daily 2x VIX Short-Term ETN (TVIX) |
$112.36 | none |
| Franklin Resources (BEN) |
$32.39 | 18.8% |
| Old National Bancorp (ONB) |
$26.64 | none |
| Ameris Bancorp (ABCB) |
$87.83 | none |
| Green Dot Corporation (GDOT) |
$13.11 | 34.0% |
| QCR Holdings (QCRH) |
$102.95 | none |
| ConnectOne Bancorp (CNOB) |
$32.94 | none |
| Lexington Realty Trust (LXP) |
$60.53 | none |
| HSBC Holdings plc (HSBC) |
$106.42 | none |
| Invesco Mortgage Capital (IVR) |
$7.41 | 56.9% |
| Summit Hotel Properties (INN) |
$6.88 | none |
| The PNC Financial Services Group (PNC) |
$248.49 | none |
| Noah Holdings Limited (NOAH) |
$8.45 | none |
| Capital One Financial Corporation (COF) |
$208.71 | none |
| The Charles Schwab Corporation (SCHW) |
$104.47 | none |
| Credit Acceptance Corporation (CACC) |
$587.85 | none |
| Bank of Marin Bancorp (BMRC) |
$29.50 | none |
| KeyCorp (KEY) |
$22.18 | none |
| SLM Corporation (SLM) |
$25.69 | none |
| American Express Company (AXP) |
$331.50 | none |
| Citigroup (C) |
$127.13 | 19.1% |
| Cigna Corporation (CI) |
$296.47 | none |
| Equity Residential (EQR) |
$68.85 | none |
| The Goldman Sachs Group (GS) |
$980.75 | none |
| American Assets Trust (AAT) |
$23.72 | none |
| M&T Bank Corporation (MTB) |
$250.33 | none |
| The Progressive Corporation (PGR) |
$219.99 | none |
| Iron Mountain Incorporated (IRM) |
$120.75 | none |
| Agree Realty Corporation (ADC) |
$80.39 | none |
| Simon Property Group (SPG) |
$235.61 | none |
| Regions Financial Corporation (RF) |
$30.94 | none |
| ARMOUR Residential REIT (ARR) |
$16.36 | none |
| The Hartford Financial Services Group (HIG) |
$145.68 | none |
| JPMorgan Chase & Co. (JPM) |
$344.71 | none |
| Discover Financial Services (DFS) |
$0.00 | none |
| Prudential Financial (PRU) |
$122.63 | 57.3% |
| MetLife (MET) |
$97.02 | 13.3% |
| Prologis (PLD) |
$145.47 | none |
| Kimco Realty Corporation (KIM) |
$26.01 | none |
| Arlington Asset Investment Corp. (AI) |
$8.85 | none |
| Genworth Financial (GNW) |
$10.08 | 72.5% |
| UnitedHealth Group Incorporated (UNH) |
$420.57 | none |
| Wells Fargo & Company (WFC) |
$83.87 | none |
| Unum Group (UNM) |
$83.63 | none |
| Morgan Stanley (MS) |
$203.13 | none |
| T. Rowe Price Group (TROW) |
$118.87 | none |
| Riverview Bancorp (RVSB) |
$5.29 | none |
| Saul Centers (BFS) |
$34.32 | none |
| CME Group (CME) |
$265.44 | none |
| Cincinnati Financial Corporation (CINF) |
$181.33 | none |
| BB&T Corporation (BBT) |
$29.84 | 34.8% |
| Fifth Third Bancorp (FITB) |
$56.57 | none |
| Arrow Financial Corporation (AROW) |
$40.05 | none |
How to Invest in Financial Services Stocks
Sector-Specific Considerations
When evaluating Financial Services companies, consider these key factors:
- Sector fundamentals: Is this sector growing, mature, or declining? Growth prospects affect reasonable earnings forecasts.
- Economic sensitivity: How does this sector perform in different economic conditions? Understanding cyclicality helps you time purchases.
- Competitive dynamics: Are barriers to entry high or low? Strong moats protect profits and justify premium valuations.
- Regulatory environment: Does government policy significantly impact this sector? Regulatory changes can create risks or opportunities.
- Capital intensity: Does the business require heavy capital investment? Capital-light businesses often generate better returns.
✓ Sector Analysis Checklist
- Compare P/E ratios within the sector
- Look for strong free cash flow generation
- Assess debt levels relative to peers
- Evaluate dividend sustainability
- Check management track record
- Calculate margin of safety
Common Sector Pitfalls
- Chasing last year's hot sector
- Ignoring sector-wide headwinds
- Overpaying for market leaders
- Neglecting competitive threats
- Failing to diversify across sectors
- Not understanding the business model